Chainlink, the leading decentralized oracle network, has launched live on-chain price feeds for Ondo Finance’s tokenized U.S. equities on the Ethereum blockchain.
Ondo Global Markets, the tokenization platform created by Ondo Finance, has integrated Chainlink Data Feeds to deliver reliable, institutional‑grade price information for tokenized stocks such as SPYon (a tokenized SPDR S&P 500 ETF), QQQon (a tokenized Invesco QQQ ETF), and TSLAon (a tokenized Tesla share).
These feeds are now live on Ethereum and updating in real time, allowing decentralized applications to reference accurate market data for these assets directly onchain.
Chainlink now gives Ondo’s tokenized stocks live price updates on Ethereum.
Lending in DeFi must be transparent, since proper pricing is key: the protocol must know and continue to follow the current value of the collateral asset as it moves. Without live prices, the protocol wouldn’t know when the asset is becoming risky, when it needs adjustment, or when it needs to be liquidated to protect the lending pool.
Tokenized equities (as opposed to passive investments) are now available for use on a DeFi protocol because they have real numbers on which it can establish rules for borrowing, collateral limits, and liquidation thresholds.
Ondo also said the tokenized stocks remain aligned with the real value of the equities they represent because the price feeds include updates like dividends and other corporate charges. This keeps tokens up to date, so DeFi apps can use the latest values that reflect what is happening in traditional stock markets.
The first group of supported tokenized equities is SPYon, representing the SPDR S&P 500 ETF, QQQon, representing the Invesco QQQ ETF, and TSLAon, representing Tesla stock. Ondo said they will add more tokenized stocks and ETFs with time as Chainlink covers more options and as DeFi protocols start integrating these assets.
Euler now lets people borrow stablecoins by using Ondo’s tokenized stocks as collateral.
Users on the modular lending platform Euler can now use Ondo’s tokenized US stocks as collateral in a DeFi lending market and even borrow stablecoins against them. People can use these tokenized equities to unlock liquidity on Ethereum instead of just holding them to watch the price move.
It’s the first time people can use tokenized stocks as collateral in Ethereum-based lending, because users usually buy them for exposure but never use them as crypto assets like ETH or stablecoins.
Until now, tokenized real-world assets have been purely passive. Investors could hold a tokenized version of a stock and track its price, but they could not borrow against it, leverage it, or use it to generate income as traditional finance allows. In traditional finance, stocks are often used as collateral for loans, and Ondo wants to make this available in DeFi.
Now, Ondo believes that the pieces are finally coming together. Tokenized stocks can begin to behave like true building blocks in decentralized finance, with strong liquidity driven by traditional stock exchanges, and Chainlink providing reliable on-chain price feeds.
CEO of Euler, Jonathan Han, said users can now borrow against securities instead of selling them and giving up long-term profits.
Of course, good markets require good risk management, especially when new forms of collateral are used. So Ondo said the Senator will set and monitor critical safety limits, such as collateral requirements, liquidation levels, and borrowing limits, to ensure the system remains stable even when markets become volatile.
Sentora CEO Anthony Demartino said retail investors didn’t have the freedom to use their securities before, but they can now use their assets productively while maintaining their long-term investments through tokenization.
Ondo also made it clear that lending is just the first step, as it plans to expand tokenized equities into vaults, structured products, and broader DeFi applications.
So, eventually, Ondo’s tokenized stocks might contribute to the broader on-chain finance ecosystem by making it easier to integrate traditional systems with decentralized ones.
Source: https://www.cryptopolitan.com/chainlink-brings-live-prices-to-ondo/
